Progreso Mexico Port: Mexico’s Great Missed Opportunity - Desteia

Progreso Mexico Port: Mexico’s Great Missed Opportunity

Given its strategic location, the port of Progreso might be Mexico's greatest opportunity. We looked at the data to back this claim.

August 19, 2024

The city of Progreso, on the north of Mexico’s Yucatan Peninsula, might just be Mexico’s biggest missed opportunity. Yes, that is right. It is not a border town close to the country’s large factories, nor a trade route at the heart of the Bajio Region in Mexico’s industrial heartland. The true missed opportunity might be a beach town less than an hour drive from Mérida.

Why? Location. Progreso already has an industrial port that ranks amongst the largest in Mexico—albeit, severely underutilized, as we will soon argue. But, most importantly, it has a unique spot in global routes right in the Yucatan Channel between Mexico and Cuba, as vessels head to the US. This is one of the most heavily transmitted trade points in the ocean with an estimated 16,132 transit calls a year—for reference, the Suez Canal has some 22,217 calls per year, while the Panama Canal falls below Yucatan at 12,899 annual calls.

Port of Progreso Map (2024)

A map showing the location of the port of Progreso.

The importance of trade routes is evident in the history of Singapore, a small island nation in the center of one of the world’s most important trade routes: the Strait of Malacca, with 26,792 transit calls per year. When Singapore gained its independence in 1965, it had a GDP of some $970 million. Soon after, it began taking advantage of its location, becoming a global transshipment hub along Malacca. Now, Singapore’s GDP is a high $501.4 billion.

However, Progreso is not Singapore. In terms of ocean traffic, Progreso is not a priority compared to ports like Manzanillo and Lazaro Cárdenas—the two largest in the country. Thus far in 2024, Manzanillo has handled over 1.9 million TEUs worth of cargo while Lázaro Cárdenas handled around 1.1 million TEUs. In that same period, Progreso handled a little over 54,000 containers.

TEUs Handled at Manzanillo, Lázaro Cárdenas, and Progreso (2023-2024)

(in TEUs handled per month)

A line graph showing the number of TEUs Handled per month at Manzanillo, Lázaro Cárdenas, and Progreso between 2023 and 2024 with different lines for each port.

Progreso, thus far in 2024, handled 4.5 million tons of cargo, placing it as the 11th largest port for cargo. In contrast, Lazaro Cardenas has handled over 15 million tons, and Manzanillo has over 17 million tons.

Tons of Cargo Handled Thus Far in 2024 by Port

(in metric tons)

A bar graph showing the tons of cargo handled thus far in 2024 by the largest ports in the country.

So, should Progreso be promoted as a more significant player in Mexico’s port structure? Likely yes, as it holds a unique location in the Yucatan Channel.

Vessel Crossings (2019-2024)

(seven day moving average of vessels)

A line graph showing the seven-day moving average of vessel crossings for the Yucatan Channel and Mexico as a country between 2019 and 2024.

Despite thousands of vessels crossing the Yucatan Channel each year, few stop in Progreso. A study conducted at Desteia found that while other ports like Manzanillo and Veracruz are connected to many trade routes, Progreso appears just three times in major shipping lines.

Number of Shipping Routes that Include each City

(shipping routes the four largest carriers: Maersk, MSC, COSCO, and CMA CGM)

A bar graph showing the number of times key ports in Mexico are included in shipping routes from the four largest carriers: Maersk, MSC, COSCO, and CMA CGM.

The explanation for the low traffic at Progreso may lie in its distance from major industrial centers in Mexico. Progreso is 1,348 km away from Mexico City, while Veracruz and Altamira are much closer. Nevertheless, recent investments in rail infrastructure, known as the Mayan Train, could soon enhance Progreso's connectivity.

Main Routes from Top East Coast Ports to Mexico City

A map showing the main land routes from Altamira, Veracruz, and Progreso to Mexico City.

This situation suggests that Mexico has a unique opportunity to create a global logistics hub, potentially increasing its capabilities and attracting significant investment to the Yucatan Peninsula, which would enhance the lives of many in Mexico.